Do you need moving insurance?
Amid the chaos of moving house, it’s easy to overlook things, but researching moving insurance is one job that shouldn’t be neglected.
Like any other kind of insurance, moving cover provides peace of mind and financial protection, but experts say it’s important to read the fine print to understand what a policy means.
Many New Zealanders assume damage done during a professional move will be covered by their own home and contents insurance or the removalist’s cover, but this isn’t necessarily the case.
Who provides moving insurance?
- traditional content insurance providers
- qualified removalist firms
- specialised moving insurers
Many home content policies insure possessions during transit, but only if a professional mover is used. This varies policy to policy though, with some insurers offering it as an optional extra. Some insurers won’t cover DIY moves, or only offer certain levels of coverage.
Removalists qualified to sell financial products can offer insurance as part of their service and there are also specialised insurers, dedicated to offering moving cover.
What paperwork should a moving policy include?
A removalist qualified to offer insurance will be able to provide a Product Disclosure Statement (PDS), a Financial Services Guide (FSG) and documents in the client’s name.
While all good removalists are insured, if they aren’t legally responsible for a mishap which damages goods being moved, the owner can be the loser.
"There is a misconception and an expectation that the removalist should have to accept all responsibility for loss or damage caused during a move. This is not always the case.”
The cost of moving insurance is based on the sum the contents are insured for.
"Valuables including money and jewellery, are excluded, but insurance covers things like furniture, electrical goods and garden equipment.”
You can expect full cover to move the contents of an average NZ home, ranges from an estimated $320 to $600.
This figure can change depending on a number of factors, such as the value and types of goods, claims history, the distance to be travelled, any storage period and the excess selected.
